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Voluntary Responsible Borrowing Code issued by NZ Federation of Family Budgeting Services as counterpart to lenders' new Responsible Lending Code

Personal Finance
Voluntary Responsible Borrowing Code issued by NZ Federation of Family Budgeting Services as counterpart to lenders' new Responsible Lending Code

With the new Responsible Lending Code having taken effect on June 6 under the oversight of the Commerce Commission, the New Zealand Federation of Family Budgeting Services has issued a voluntary Code of Responsible Borrowing as a counterpart.

The Federation says the borrowing code is for anyone thinking about taking out a loan or entering into a credit contract. It notes 82% of New Zealand families have debt of some kind, and collectively we spend more than we earn.

"This Code of Responsible Borrowing will help you avoid penalties, repossession, stress and heartache. It establishes minimum expectations for New Zealanders considering a loan or credit contract," the Federations says.

The Code advises borrowers to work out their budget because a responsible borrower is sure they can afford the repayments. It advises people to look at all their options because a responsible borrower considers whether there are other ways to meet their needs. It also says borrowers should find out more about what they're signing because a responsible borrower knows what they're signing. Additionally it advises borrowers to provide all the information the lender needs, and talk to their lender if unexpected life events make repayments difficult.

"Lenders have an obligation to lend responsibility. Lenders are regulated by the Credit Contracts and Consumer Finance Act and guided by the Code of Responsible Lending. Borrowers have an obligation to borrow responsibly. This Code of Responsible Borrowing sets out the expectations of responsible borrowers, completing the other half of the equation. It is voluntary, but sticking to this Code shows your commitment to borrowing responsibly," the Federation says.

The Code of Responsible Borrowing was produced in association with the Financial Services Federation, the lobby group for finance companies.

See all our stories on the Responsible Lending Code here.

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"and collectively we spend more than we earn."

or that the current economy requires us to expend more than we can gather. like -that- isn't a warning sign.


There are now multiple generations behind me of "Must Haves", I'm witnessing it first hand on a daily basis. The waste is incredible, new mobiles when the old one still works, replacing things that still work but are no longer are trendy or in fashion. Carry on like that with everything in life and your over exposing yourself financially. I for one will not be crying for people who put themselves in this position. It would appear we now have people so stupid in society we have to come up with a code of responsible borrowing. You know things have got bad with the way they teach math these days when people cannot work this out for themselves.


Planned obsolescence, marketing the latest must have gadget are capitalist tools to keep the factories going by us buying. of course in effect it also keeps ppl in jobs, so really both sides of the political fence are wedded to exponential growth for ever on a finite planet.

"crying for people " except everyone expects a get out of jail for free card, so you and I will be crying as we end up paying for some (at least) of this.

teach? lol, as my first line we as a society have been overlaoded / brainwashed with we have to have it.